Or as I would summarize: Challenges and opportunities for smart and patient people (and companies, of course).
Welcome to our new blog series about the rewards and challenges when entering the German market as a med tech company! If you are with a medical technology company eyeing Europe’s largest healthcare market, this series might be a good read.
Germany offers huge opportunities – with its aging population, strong economy, and commitment to healthcare innovation. But let us be honest – entering this market will be a very German experience. And I mean that in a positive but also slightly negative way. There are unique challenges that can make you ask yourself more than once if it is worth it.
In this introductory post, I will provide a quick tour through the main obstacles you will face. Then, in upcoming articles, I will offer a more detailed look at individual aspects.
My name is Manuel Paul, I work for mmehr.eu as the advisor MedTech and I honestly hope that I can interest you in my home country. We need innovative solutions to satisfy our rapidly growing healthcare needs while managing our immense healthcare budget. Hopefully, your product will be part of the solution.
Rules and regulations – German style
First up: regulations. Germany loves rules, and healthcare is no exception! You will need to navigate EU MDR compliance and Germany-specific requirements, partly depending on the reimbursement pathway that you choose. It is a bit like solving a 1000-piece puzzle of a blue cloudless sky. It is possible with determination and patience, but you need to know why you are doing it to not lose motivation and focus. The good news is that there is no hidden fine print. Read, understand, and follow the rules, and you already achieve an important first step: Compliance and trustworthiness.
Cracking the reimbursement code
Germany’s dual public-private insurance system is impressively well-funded but complicated. Getting your product approved for reimbursement involves multiple stakeholders. Understanding how pricing works here and what needs the stakeholders have is crucial. The good news is that, depending on your product, you have a huge amount of potential business partners and possibly more than one reimbursement pathway.
Cultural dos and don’ts
Business in Germany has its own rhythm and rules. Direct communication, punctuality, and thorough preparation are valued. And while many Germans speak excellent English, having German-language materials shows you are serious about the market. And not just that: It might be that your material must be passed on through the hierarchy to get final approval for the sale. One not-so-good English speaker in that chain and you are out. Also, in a conference call, especially in bigger rounds, your German partners might not be comfortable speaking English. In some settings – for example when reaching out to individual outpatient clinics – a call or email in English will be automatically dismissed as spam, leaving you to wonder why your beautifully crafted campaign that worked in the UK does not create a single lead in Germany.
Facing the competition
Germany has a robust ecosystem of local and international med tech players. Standing out requires understanding who’s already there and what gaps exist. In most areas, there is no FAANG-like oligopoly. Even if a competitor might already occupy your niche, there is usually room for at least one more. In some areas, change is difficult to achieve. Some software products are still sold and kept in use despite an NPS of nearly -90. Look at it that way: German customers are usually very loyal. Once they are on board, you are very likely to have a new long-term customer.
The digital health revolution
Germany’s Digital Healthcare Act created exciting pathways for digital health solutions. The DiGA Fast-Track process can get your digital therapies prescribed and reimbursed – but it comes with strict requirements and has proven to be difficult to navigate, with some decisions by public bodies ending whole companies because of a sudden lack of reimbursement.
Making it local
It is not enough to simply translate your materials into German. Products often need adaptation to meet local preferences and standards. By that, I do not mean that you have to write different handbooks for each bigger city. The different structure of German Healthcare can mean that specific terms or processes do not translate well into German. You might want your materials to offer a better quality than a 10€ robotics toy’s handbook from Temu. Doing this properly gives you a valuable advantage over your competitors.
Smart entry strategies
Should you partner with distributors? Open a local office? Target specific regional healthcare clusters? Germany is a federal republic consisting of culturally different federal states. Bavaria and Hamburg are in the same country, but sometimes it feels like being in a different universe. Metropolitan areas and vast rural landscapes have their individual needs and challenges. Plan wisely before randomly knocking on doors and doing the odd sale here and there, but without real traction.
Looking ahead
The German healthcare landscape continues to evolve. We will explore emerging opportunities, upcoming regulatory changes, and where the market is heading.
Your German market journey
Breaking into the German med tech market requires preparation, patience, and persistence. But with the right approach, the rewards can be substantial.
Have specific questions about entering the German market? Put them in the comments below, and I will try to address them!
Want to get to know what we offer? Get in touch!
Until next time – Bis zum nächsten Mal!